Led by Alexey Miller, the Company’s Management Committee Chairman, Gazprom’s delegation is taking part in the 9th St. Petersburg International Economic Forum. In delivering his speech, Alexey Miller disclosed Gazprom’s crucial strategic projects in northwestern Russia, namely the North-European gas pipeline (NEGP) construction and Shtokman LNG project development.

“These projects are an integral part of our strategy to convert Gazprom into a global vertically integrated energy firm,” – noted A. Miller.

“Currently, we’re intensively involved in the marketing survey study for LNG supplies from the Shtokman field to the US market. LNG carrier shipments to the Mexican Gulf and US Eastern Coast are among our most promising projections. Potential LNG supply to Mexico and Canada, with further transportation to the USA, is under scrutiny, as well.

We’ve established close business relations with practically all the prominent petroleum companies interested in the project. We’re placing the strictest demands on our potential counterparts. Firstly, they should have access to and work experience on the US market and, secondly, should rely on state-of-the-art offshore development technologies indispensable for the Shtokman operation,” – said A. Miller.

“Irrespective of the significance of access to new markets, Europe has been and still is a ‘number one’ market for Gazprom,” – underscored Alexey Miller in his report. “NEGP is intended to specifically meet gas needs of Europe. This is a unique and unparalleled in the world gas pipeline that will directly link gas transmission systems of Russia and West Europe. The NEGP construction project opens a cardinally new corridor of Russian gas exports to Europe. The line will run under the Baltic Sea, from the town of Vyborg to the German coast (Greifswald vicinity). The NEGP construction and first line operation is due in the autumn of 2005 and 2010, respectively. The line throughput will total 55 bcm of gas per annum.”

According to A. Miller, “Gazprom has so far identified its major NEGP project partner, which is the German corporation BASF, but other firms are welcome, as well. A range of accords between BASF and Gazprom allows the latter to substantially solidify its standing in Europe and acquire strategically crucial assets (gas pipeline and underground gas storage networks). Moreover, foreign investors, namely Germany-based firms, have first been granted access to gas production from the Russian Yuzhno-Russkoye field.”

“A remedy against any gas supply shortages, NEGP along with exchange of assets is an element of the European energy safety strategy. The scheme of our interaction with international firms when implementing the NEGP and Yuzhno-Russkoye projects is a model of successful cooperation in the energy sector, that we will follow from now and onwards,” – said Alexey Miller at the end of his speech.

DIVISION OF RELATIONS WITH MASS MEDIA